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<p>[QUOTE="medoraman, post: 1369896, member: 26302"]Sorry sir, but I would emphatically warn you to not put any weight in this comparison. Gold is a store of value, and a proxy for the labor required to get it out of the ground. Stock markets are prospective valuations of company profits. The two things have very, very little in common, (even the pricing mix of any index is pure coincidence), and would hate you making any investment decision on these accidental relationships drawn between the two things. </p><p><br /></p><p>Humans like to try to tease apart hidden relationships in numbers. Its how our brain is wired. Problem is, I could put together a relationship paradigm tying together price of silver as it related to the average temperature at noon in Bali and this season's lemon crop in CA. Sometimes you have to stop yourself and ask WHY would these things have any relationship? If you cannot concretely answer that question, then odds are its just number BS than thousands of people put together every day trying to get someone to pay them money for their "insights".</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1369896, member: 26302"]Sorry sir, but I would emphatically warn you to not put any weight in this comparison. Gold is a store of value, and a proxy for the labor required to get it out of the ground. Stock markets are prospective valuations of company profits. The two things have very, very little in common, (even the pricing mix of any index is pure coincidence), and would hate you making any investment decision on these accidental relationships drawn between the two things. Humans like to try to tease apart hidden relationships in numbers. Its how our brain is wired. Problem is, I could put together a relationship paradigm tying together price of silver as it related to the average temperature at noon in Bali and this season's lemon crop in CA. Sometimes you have to stop yourself and ask WHY would these things have any relationship? If you cannot concretely answer that question, then odds are its just number BS than thousands of people put together every day trying to get someone to pay them money for their "insights". Chris[/QUOTE]
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